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post #81 of 95 Old 02-03-2020
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Re: Best Eastern Seaboard State for Sales Tax

It's like Mark Twain said:
"If you don't read the news you're uninformed. If you do read it you're misinformed."
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post #82 of 95 Old 02-04-2020
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Re: Best Eastern Seaboard State for Sales Tax

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Originally Posted by Minnesail View Post
I hadn't heard about the Kerry thing until today, but this sounds about right. He bought the boat in RI and kept it in RI. It was only in MA briefly. This looks more like tax avoidance than tax evasion. It wasn't the department of revenue that went after him and caused him to pay the taxes, it was the media that went after him.

John Kerry Takes on Water Over Yacht Controversy
Kerry Agrees to Pay Massachusetts Tax on Yacht Docked in Rhode Island...
I guess everyone has the right to see it anyway they like. This was an attempt at tax avoidance and would have been just fine, if the boat stayed in R.I. However, he lives in Mass and used it there. Iím not looking up the Mass rules, but itís common there is no waiting period to owe use taxes for a given States residents. The media doesnít likely understand these rules any better than most on the forum. The grace for the sales tax and use tax are two different things.

The trick to have it owned by a PA Corp is also irrelevant. It only matters where the asset is and for how long.

There is no doubt Kerry blew this one. Folks are caught doing it around here all the time.


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Re: Best Eastern Seaboard State for Sales Tax

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The media doesnít likely understand these rules any better than most on the forum.
Yep. We go around and around on these things here, with people giving misinformation all the time. Is there anyone out there who would really imagine that the press took the time to actually get it exactly right!!??!!
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post #84 of 95 Old 02-04-2020
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Re: Best Eastern Seaboard State for Sales Tax

So... being totally confused...
I am wintering my boat in CT and mooring in season in CT, but will be sailing in NYS, RI, MA and ME. I presume I now am obligated to tax to CT... and register it there?????
If so... what is the taxable value? Does the clerk in the DMV office determine that? Or do they tax me at the sale price in 1985?

pay attention... someone's life depends on it
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Re: Best Eastern Seaboard State for Sales Tax

Tax is always on current value. Sometimes, there is a short defined period, where the sales price is presumed to be current value. Which tax and when it accrues is the complicated part.
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Re: Best Eastern Seaboard State for Sales Tax

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Tax is always on current value. Sometimes, there is a short defined period, where the sales price is presumed to be current value. Which tax and when it accrues is the complicated part.
Who or what determines current value?

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Re: Best Eastern Seaboard State for Sales Tax

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Who or what determines current value?
Iím sure thatís different by state. Obviously, a survey would be hard for a State to dispute. There are book values, but they never seem to reflect reality.

Why do I think everyone is pretty proud of the value of their unique, well fit out and maintained vessel, until it comes time to declare a taxable value. 🙂


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post #88 of 95 Old 02-04-2020
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Re: Best Eastern Seaboard State for Sales Tax

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Originally Posted by SanderO View Post
So... being totally confused...
I am wintering my boat in CT and mooring in season in CT, but will be sailing in NYS, RI, MA and ME. I presume I now am obligated to tax to CT... and register it there?????
If so... what is the taxable value? Does the clerk in the DMV office determine that? Or do they tax me at the sale price in 1985?
I'd Just call the Conn. DMV According to their site.

If you live out of state, but are remaining in their waters more than 60 days. They will issue you a "Certificate of Decal" Do you have records of the Tax you paid to NY at the time of purchase?
It looks like they'll credit you for taxes paid to another jurisdiction.

Here's the form https://portal.ct.gov/-/media/DMV/B148pdf.pdf?la=en

If you're leaving Conn. to go cruising, it's possible you may avoid having to do anything. The answers are in Conn.
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Re: Best Eastern Seaboard State for Sales Tax

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I'd Just call the Conn. DMV According to their site.

If you live out of state, but are remaining in their waters more than 60 days. They will issue you a "Certificate of Decal" Do you have records of the Tax you paid to NY at the time of purchase?
It looks like they'll credit you for taxes paid to another jurisdiction.

Here's the form https://portal.ct.gov/-/media/DMV/B148pdf.pdf?la=en

If you're leaving Conn. to go cruising, it's possible you may avoid having to do anything. The answers are in Conn.
Waiting for a call back... there is a conundrum here. The form and instructions demands a Bill of Sale. This is NOT what Minni is claiming... which is present value.

Note that for insurance purposes you would likely want a HIGH value... but if this tax thing applies you would want the lowest value.

So if I understand CT correctly.. if I winter in CT and moor in LI I have to pay taxes every 6 months because I have to change registration?

pay attention... someone's life depends on it

Last edited by SanderO; 02-04-2020 at 11:02 AM.
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post #90 of 95 Old 02-04-2020
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Re: Best Eastern Seaboard State for Sales Tax

Jeebus, no wonder attorneys make so much money:

Directive 87-3: Property Purchased for use in Massachusetts; Burden of Proof

Quote:
It should be noted that the use tax may apply to non-residents. Furthermore, property need not be used exclusively or even primarily in Massachusetts to be considered purchased for use within the Commonwealth.
Quote:
EXAMPLE 1: Taxpayer Taylor, a resident of New Hampshire, purchased a sailboat in Connecticut on May 1. She brought the boat to the Cape in June, renting space for it in a Wellfleet marina. Since that time she has sailed the boat in nearby waters.

Since Taylor brought the boat into Massachusetts within six months of purchase, she has the burden of proving it was not purchased for use here. Under these facts and circumstances, Taylor cannot meet this burden and is, therefore, liable for the use tax on the boat.
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EXAMPLE 3: Taxpayer Davis, a resident of the Commonwealth, is a tenured professor at the University of Massachusetts. For his sabbatical, he decided to purchase a small boat and sail around the Caribbean. On December 1, he went to Florida where he purchased the boat for his trip. He returned to Massachusetts with the boat on July 1. Since that time he has sailed the boat in Massachusetts waters.

Since Davis brought the boat into Massachusetts more than six months after purchase, the Commissioner has the burden of proving it was purchased for use here. Under these facts and circumstances, the Commissioner can meet this burden. Therefore, the use tax will apply.

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